Social commerce startup Otipy raises $ 10.2 million in Series A led by SIG
Otipy, a community platform for buying fresh fruit and vegetables, has raised $ 10.2 million in its Series A round led by SIG. Omidyar Network India, Innoven Capital and existing investors Inflection Point Ventures, Pravega and FactorE also participated in the round.
This is the second round of financing for Otipy, which has gone from a large-scale farm model (Crofarm) to a B2B2C platform in early 2020 with a social commerce flavor. Inflection Point Ventures and Smile Group had invested $ 2 million in the Gurugram-based company last year.
Coach had made an exclusive report on the pivot of Crofarm in June 2020.
While Otipy did not disclose his valuation in the Series A round, CoachSources have estimated it to be between $ 25 million and $ 30 million.
According to the company, the new products will support its future growth path and add additional categories to its supply chain.
“Fresh produce represents a gross margin category of 35% to 40%, however, it is the waste that kills these margins. We are among the first companies to be able to control it through our innovative model, ”said Varun Khurana, founder and CEO of Otipy.
Otipy’s farm-to-plate delivery model maximizes freshness by sourcing directly from farmers. Using proprietary demand forecasting engines, the company ensures little or no storage of fresh produce. The company claims to deliver fresh produce to consumers in less than 12 hours.
The company further claims to source more than 2,500 tonnes of fresh produce each month from more than 10,000 farmers across the country. It basically follows a social commerce model where the company delivers products to local stores and dealers, especially women, who take care of the last mile delivery.
According to Otipy, these resellers earn 8-10% commission on each achievement.
Currently operational in Delhi (NCR), Otipy claims to serve 2 lakh households in the region. According to the company, the new funds will also help it enter more cities in the near future.
Otipy competes directly with Safal Stores and hyperlocal sabziwala as well as e-grocers such as BigBasket and Grofers. It should be noted that Meesho has also been operating in this space for about a year with Farmiso. However, it looks like the new offering has yet to take off.
While there is no direct competition for Otipy, new age social trading companies such as DealShare and CityMall can enter this space as the margin in fruits and vegetables is high and sustainable in the long run.